Manufacturing is rebounding from its June swoon
The Fed's regional manufacturing indexes are bouncing back in July after an awful June swoon, none more so than the Philadelphia region, which rose to 21.8 from a 0.3 reading in June.
Why it matters: It was the highest result in a year for the survey.
Details: Many of June's regional Fed surveys were conducted during the week President Trump threatened to impose tariffs on imports from Mexico in addition to tariffs on $200 billion worth of Chinese goods.
- "A July rebound, therefore, was always likely but this is a gratifyingly big increase," Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a note to clients.
- The strong rebound in the Philly Fed number, following a modest gain from the New York regional Fed, doesn't promise a pickup in overall U.S. manufacturing, "but it does make it much more likely," Shepherdson added.
Go deeper: Manufacturing numbers keep getting worse